NasdaqGS:HLIT

Stock Analysis Report

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Executive Summary

Harmonic Inc., together with its subsidiaries, provide video delivery software, products, system solutions, and services worldwide. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Harmonic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLIT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HLIT's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

HLIT

3.2%

US Communications

2.1%

US Market


1 Year Return

-18.8%

HLIT

-4.6%

US Communications

19.8%

US Market

Return vs Industry: HLIT underperformed the US Communications industry which returned -4.7% over the past year.

Return vs Market: HLIT underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

HLITIndustryMarket
7 Day3.4%3.2%2.1%
30 Day8.8%13.6%8.1%
90 Day14.1%0.9%6.0%
1 Year-18.8%-18.8%-2.0%-4.6%22.5%19.8%
3 Year67.8%67.8%15.8%7.7%46.5%36.8%
5 Year25.7%25.7%59.4%41.4%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Harmonic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Harmonic undervalued compared to its fair value and its price relative to the market?

45.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLIT ($6.74) is trading below our estimate of fair value ($21.82)

Significantly Below Fair Value: HLIT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HLIT is unprofitable, so we can't compare its PE Ratio to the US Communications industry average.

PE vs Market: HLIT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HLIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HLIT is overvalued based on its PB Ratio (2.8x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Harmonic forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

122.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLIT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: HLIT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HLIT's is expected to become profitable in the next 3 years.

Revenue vs Market: HLIT's revenue (14.6% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: HLIT's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLIT's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

Past Performance

How has Harmonic performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLIT is currently unprofitable.

Growing Profit Margin: HLIT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HLIT is unprofitable, but has reduced losses over the past 5 years at a rate of 16.8% per year.

Accelerating Growth: Unable to compare HLIT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HLIT is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-4.9%).


Return on Equity

High ROE: HLIT has a negative Return on Equity (-15.85%), as it is currently unprofitable.


Next Steps

Financial Health

How is Harmonic's financial position?


Financial Position Analysis

Short Term Liabilities: HLIT's short term assets ($214.0M) exceed its short term liabilities ($145.8M).

Long Term Liabilities: HLIT's short term assets ($214.0M) exceed its long term liabilities ($179.2M).


Debt to Equity History and Analysis

Debt Level: HLIT's debt to equity ratio (67%) is considered high.

Reducing Debt: Insufficient data to determine if HLIT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HLIT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HLIT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Harmonic current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HLIT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HLIT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HLIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HLIT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLIT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Patrick Harshman (55 yo)

14.5yrs

Tenure

US$3,375,050

Compensation

Dr. Patrick J. Harshman has been the Chief Executive Officer and President of Harmonic Inc. since May 4, 2006. Dr. Harshman has driven Harmonic’s strategic re-positioning as the worldwide leader in video d...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD3.38M) is above average for companies of similar size in the US market ($USD2.56M).

Compensation vs Earnings: Patrick's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Harshman
President14.5yrsUS$3.38m1.05%
$ 6.9m
Sanjay Kalra
Senior VP & CFO3.42yrsUS$1.22m0.17%
$ 1.1m
Neven Haltmayer
Senior Vice President of R&D - Video Business9.67yrsUS$1.04m0.18%
$ 1.2m
Nimrod Ben-Natan
Senior VP & GM of Cable Access Business8.42yrsUS$1.42m0.36%
$ 2.4m
Jean-Marc Guiot
Senior Vice President of Operations & IT1.83yrsno datano data
Michael Smiley
Finance & Investor Relations Managerno datano datano data
Timothy Chu
General Counsel7.08yrsno datano data
Crystele Trevisan-Jallu
Senior Vice President of Corporate Marketing & Communications1.83yrsno datano data
Ian Graham
Senior Vice President of Global Sales & Video Services0.25yrno data0.076%
$ 498.6k
Shahar Bar
Senior Vice President of Video Products & Corporate Developmentno datano datano data
Jeremy Rosenberg
Senior Vice President of Business Development3.83yrsno datano data
Tim Warren
Chief Technology Officer of Video Businessno dataUS$904.51kno data

3.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: HLIT's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Harshman
President14.5yrsUS$3.38m1.05%
$ 6.9m
David Krall
Independent Director2.75yrsUS$166.09k0.073%
$ 480.5k
Susan Swenson
Independent Director8.75yrsUS$182.00k0.18%
$ 1.2m
Patrick Gallagher
Independent Chairman of the Board7.58yrsUS$209.50k0.23%
$ 1.5m
Nikos Theodosopoulos
Independent Director5.67yrsUS$187.00k0.14%
$ 947.4k
Mitzi Reaugh
Independent Director8.33yrsUS$169.14k0.22%
$ 1.4m
Deborah Clifford
Independent Director2.08yrsUS$171.00k0.042%
$ 277.0k

7.6yrs

Average Tenure

57yo

Average Age

Experienced Board: HLIT's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HLIT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.


Top Shareholders

Company Information

Harmonic Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harmonic Inc.
  • Ticker: HLIT
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$658.820m
  • Shares outstanding: 97.75m
  • Website: https://www.harmonicinc.com

Number of Employees


Location

  • Harmonic Inc.
  • 4300 North First Street
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLITNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1995
HMCDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1995
0J38LSE (London Stock Exchange)YesCommon StockGBUSDMay 1995

Biography

Harmonic Inc., together with its subsidiaries, provide video delivery software, products, system solutions, and services worldwide. Its products enable customers to create, prepare, and deliver a range of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:29
End of Day Share Price2020/11/27 00:00
Earnings2020/09/25
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.